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Issues:
Interpretation of Import & Export Policy for the year 1992-97 regarding the import of embroidery threads under OGL based on the definition of "made up" items. Analysis: The case involved a dispute regarding the import of embroidery threads under the Open General Licence (OGL) based on the interpretation of the Import & Export Policy for the year 1992-97. The respondent-importer had cleared the threads for home consumption under OGL, citing a clarification from the licensing authority in REP Circular No. 57/77, defining the scope of "made up" items. The Dy. Commissioner contended that the threads, coming in retail packing, were consumer goods, while the importer argued that the 1977 definition of "made ups" was not relevant to the current Policy, referring to the 1992-97 Policy listing consumer goods that can be freely imported. The Commissioner held that the Policy recognized that even items regarded as consumer goods could be imported under OGL if they fell under the category of "made ups." He emphasized that the application of the threads was not relevant, as long as they were considered "made ups" under the Policy. The Commissioner accepted the importer's plea, supported by a clarification from the Export Commissioner in REP Circular No. 15/77, that the embroidery threads were indeed "made up" articles and could be imported without a license under the Policy. During the hearings, the respondent relied on the licensing authority's clarification in the circular, while the Revenue failed to provide a satisfactory response, claiming uncertainty about the circular's validity since it dated back to 1977. The Tribunal found the Revenue's reply unsatisfactory, emphasizing that the Commissioner had already accepted the circular's validity and ruled in favor of the importer based on it. The Tribunal concluded that the Revenue could not dispute the circular's validity and upheld the Commissioner's decision, dismissing the Revenue's appeal as lacking merit.
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